Traditional Budgeting

How Beyond Budgeting pushes cultural change towards entrepreneurship – a case study of the Retail division of Swiss Post

By Stefan Spiegel, CFO SBB Cargo AG, former Head Controlling of Retail Division of Swiss Post 2017

In the period from 2001 to 2006, the Retail division of Swiss Post transformed itself from a public service company into a business-driven sales organization. Crucial drivers of change were, on the one hand, the adaptation of the steering systems up to the final implementation of a "Beyond Budgeting" philosophy and, on the other hand, a humanistic attitude of management and finance department against all employees. The success was amazing: The division succeeded in increasing the sales of new retail products from 0 to over 400 million CHF, optimizing the bottom line by more than 100 million CHF or more than 5 percentage points and becoming the first state-owned company in Switzerland to win the EFQM- Award for Business Excellence.

Five Steps to Set Stretch Targets for your Budgeting Process

by Michael Coveney, co-author of "Budgeting, Planning, and Forecasting in Uncertain Times"

A few days ago I was looking through some blogs on LinkedIn when I came across a comment that suggested the purpose of budgeting was to set stretch targets. A number of people seemed to support this idea, although I personally have to disagree for two key reasons.

What is a stretch target?

First of all, what is actually meant by a stretch target. This can differ depending on where you sit. As the budget holder of a sales division, this may mean setting sales targets that are higher than what would normally be expected. For production, this may mean producing more goods for less while marketing may see this as attracting more inquiries than last year....

Corporate Finance Budgeting: Bridging Past and Future

By Rob Trippe, MBA, Financial Modelling Veteran

Many sophisticated business environments use budgets as a bridge between actual and forecast. Within the corporate finance domain, budgets are used to allocate resources and provide a starting point for current and future period estimates. Budgets and revised budgets are often communicated to shareholders and the investor community in numerous ways such as earnings estimates and road show presentations in the form of a “current estimate”. The budget becomes a foundation for expectation.

Keeping Calm during Budget Season....... Top 5 Tips to Survive!

By Chris Ortega, MBA, Sr. Finance Manager at Emarsys, USA

As a former public accounting auditor, I have been through my fair share of busy seasons which usually ran from September to April. My busy season experience consisted of 60 - 80 hour work weeks, working on the weekends, learning at an accelerated rate, and then waking up after April 15 trying to realize what the hell happened the past couple of months. For me, this was a character building and learning opportunity that I am privileged and thankful that I got to experience in my career. However, like most, I realized this was not what I wanted to do long term.

Breaking the Chains of Static Budgeting & Planning

By Ernie Humphrey, Director, The CFO Alliance 

 

2017 budgets might be locked and loaded at your company, but that does not mean that they need to be anchors on your company’s ability to anticipate, respond and react effectively to dynamic market conditions in 2017. Companies all sizes are upgrading from Excel and all its related headaches to leverage cost-effective cloud-based budgeting and planning solutions that fuel business agility by allowing companies to implement driver-based planning and forecasting.

 

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